Picture a woman who wants to start selling provisions from a rented shop front. She has some savings, a supplier's number and plenty of confidence. What she doesn't have is a written answer to three questions: how much stock she must sell each month to cover rent, what she will do when cash runs out, and who will buy from her instead of the shop down the road. A one-page plan forces those answers onto paper before money is spent.
This guide shows you how to write that page, section by section, with a hypothetical example. It is for traders, retailers and small service sellers. It isn't a document for impressing a bank, although you can grow it into one later.
Why one page is enough
A small trader's plan has one job: to find out whether the idea can work with the money and time you actually have. Long plans full of market-size claims hide weak spots. A single page makes them obvious.
Write it by hand or in your phone's notes app. Keep a copy somewhere safe, because you will revise it. A plan that never changes after launch usually means nobody is checking it.
The seven blocks of the page
Divide your page into seven short blocks. Each should take five to ten lines at most.
- What you sell and to whom.
- Why they will buy from you.
- Where and how you will sell.
- Startup costs and where the money comes from.
- Monthly costs and the break-even point.
- Risks and what you will do about them.
- Registration, permits and the first 90 days.
1. What you sell and to whom
Be narrow. "Provisions" is vague. "Drinks, noodles, sachet milk, toiletries and recharge cards for the 200 or so households within a few minutes' walk of the shop" is a plan. Name your main customer: students, office workers, other traders, estate residents.
List your ten fastest-selling items, even if you only guess at first. Then spend two days standing near competing shops and note what people actually buy and ask for. Replace your guesses with what you saw.
2. Why they will buy from you
"Good service" isn't a reason, because everyone claims it. Pick one or two things you can really do: open earlier than others, give small credit to known customers, deliver to flats, stock items nearby shops often run out of, or sell in smaller quantities. If you can't name one, you will compete only on price, and that is the hardest fight for a small seller. For more, see our post on pricing only if it appears in your reading list; otherwise the next section handles the numbers.
3. Where and how you will sell
Describe the location, footfall at different hours, who owns the space, the rent terms and how long you are covered. Confirm in writing what you are paying for. Many traders lose money from a landlord who raises rent after the shop becomes busy. If you sell by WhatsApp or Instagram as well, say how orders and payments will be handled and who delivers.
4. Startup costs and funding
List everything you must pay before the first sale: shop deposit or rent, shelving, signboard, a freezer if needed, opening stock, registration, a first-month cash cushion. Next to each item write a quote you have collected, not a guess. Then write where each naira comes from: savings, family contribution, a cooperative, a loan.
A rule that protects beginners: put at least two months of running costs in a separate reserve that you don't count as stock money.
5. Monthly costs and break-even
This block is the heart of the page. Add up your fixed monthly costs: rent, power or fuel, an assistant's pay, data, transport, any loan repayment, and a personal allowance for yourself. Then work out your average margin, which is the share of each sale left after you pay for the goods.
Break-even sales = fixed monthly costs ÷ margin.
A hypothetical worked example
These numbers are invented to show the method. Prices and costs change, so get current local quotes before you use any figure of your own.
- Assumed rent for the shop, spread monthly: ₦40,000
- Assumed power and fuel: ₦20,000
- Assumed assistant: ₦40,000
- Assumed transport and data: ₦10,000
- Assumed personal allowance you pay yourself: ₦50,000
Fixed costs come to ₦160,000 a month. Suppose your average margin is 15 percent, meaning ₦15 stays with you from every ₦100 sold.
Break-even sales are ₦160,000 ÷ 0.15, which is about ₦1,066,700 a month, or roughly ₦35,500 a day over 30 days. Now ask honestly: do you think the neighbourhood will spend that at your shop? If your observation shows 60 customers a day spending about ₦600 each, that is ₦36,000, just at the edge. A tiny slip and you lose money.
That is the value of the exercise. You can now test changes. Cutting the assistant by sharing work with a relative, negotiating rent, or raising margin through better buying all move the break-even point. Doing this on paper costs nothing. Learning it after six months of rent costs a great deal.
Remember that margin differs by product. Recharge cards and bread often carry thin margins, while toiletries and snacks may carry more. Use your real mix once you have sales data. Note too that margin isn't profit: profit is what is left after all fixed costs.
6. Risks and your response
Write at least five risks and a response for each. Common ones for traders:
- Cash tied up in slow stock. Response: buy small quantities of unproven items and track what sits unsold for 30 days.
- Customer credit that isn't repaid. Response: limit credit to a fixed amount, write it down daily, and follow up politely. Our post on follow-ups for unpaid balances helps with the wording.
- Price rises from suppliers. Response: review selling prices every month and keep two suppliers per main item.
- Power cuts spoiling frozen or chilled goods. Response: only stock what your backup can cover.
- Mixing business and personal money. Response: pay yourself a fixed allowance and keep a separate account.
- Theft or fraud, including by staff or fake transfer alerts. Response: confirm transfers in your bank app, not by a screenshot.
Many small shops fail not from one big disaster but from several of these small leaks together. Our post on why small businesses fail goes through the warning signs.
7. Registration, permits and the first 90 days
Rules differ by trade, state and local government, so check with the authorities rather than relying on hearsay. In general terms, in Nigeria you should consider registering your business name with the Corporate Affairs Commission (CAC), getting a tax identification number, and finding out about any local government levies, signage or shop permits. Food, drinks, cosmetics and drugs may involve NAFDAC rules. Our guide on registering a business name with CAC covers that step, and the post on business name or limited company helps you choose the form. Readers in Ghana, Kenya and South Africa should check their own registrar and revenue authority, since the bodies and forms differ.
Then write a 90-day plan with dates: when you will pay rent, order stock, open, review your first month's sales and decide whether to adjust. Put a date on your first review, because plans without dates are usually not followed.
Common mistakes to avoid
- Using your total savings as stock money and leaving no reserve.
- Guessing sales instead of watching real footfall.
- Forgetting your own pay in the costs, which makes the shop look more profitable than it is.
- Ignoring the cost of restocking, since every sale must be replaced at a new supplier price.
- Writing a plan once and never comparing it to real figures.
How the plan changes by situation
| Situation | What to adjust |
|---|---|
| Market stall or table | Lower rent, but check daily levies and where you store goods overnight |
| Online or WhatsApp seller | Add delivery, packaging, data and returns to the monthly costs |
| Starting while employed | Plan who is in the shop when you are at work, and count that cost |
| Using a loan | Add repayments to fixed costs and re-run break-even before accepting |
Frequently asked questions
Do I need a bigger plan to get a loan?
Possibly. Lenders and grant schemes often have their own forms and ask for more detail. Your one page gives you the numbers to fill them in honestly. Never inflate figures, and be careful with anyone who promises easy loans for an upfront fee.
How often should I update it?
Check break-even monthly for the first six months, using actual sales and costs. After that, review quarterly or whenever rent, supplier prices or staff costs change.
Can I guarantee I will make a profit if my numbers work?
No. The plan reduces avoidable mistakes but can't remove risk. Demand, prices and costs can change, so keep your reserve and review often.
Your next step
Take a page today and write the seven headings. Then spend this weekend collecting real quotes for rent, stock and power, and work out your break-even sales before you commit any money.
This article is for general information only and is not financial, legal, or tax advice. Prices, rates and rules change quickly, so check current details before making money decisions.